Why Have REA Group (ASX:REA) Shares Declined Over the Past Year, and What Did FY26 Show?

Sonal Goyal

20 October 2026 12:47 PM AEDT

Why Have REA Group (ASX:REA) Shares Declined Over the Past Year, and What Did FY26 Show?

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key highlights

REA Group (ASX:REA) the stock finished the session at $160.93, down approximately 0.30% on 19 October 2026, and the shares are down approximately 26.41% over the past year.
The 6 August 2026 release reports core revenue of $1,793 million, up 7%, and net profit from core operations of $650 million, up 15%.
The final dividend is $1.73 per share, fully franked, with full-year dividends of $2.97 per share, up 20%.

REA Group (ASX:REA) operates realestate.com.au, Australia’s major property listings platform, along with financial services and international interests. On 19 October 2026, the stock finished the session at $160.93, down approximately 0.30%. Over the longer term, the shares are down approximately 26.41% over the past year. On 6 August 2026, the company announced its results for the year ended 30 June 2026, covering revenue, profit, dividends, audience metrics and portfolio changes.

FY26 results

Revenue from core operations was $1,793 million, up 7%, with Australia up 11%. Operating expenses of $705 million were flat, with Australia up 7%, in line with guidance. EBITDA excluding associates was $1,088 million, up 12%, and the operating EBITDA margin expanded to 66%. Net profit from core operations was $650 million, up 15%, and EPS was $4.93. Reported net profit of $552 million was down 19%, largely because of a $111 million impairment of REA India in FY26 and a $117 million reversal of impairment on the sale of PropertyGuru in FY25. Free cash flow rose 17%.

Dividends and capital management

The final dividend is $1.73 per share, fully franked and up 25%, bringing full-year dividends to $2.97 per share, up 20%. A $200 million on-market share repurchase was executed, with more than 1.25 million shares purchased.

Audience, products and portfolio

Residential revenue rose 12%, driven by 13% growth in revenue per for-sale listing and flat listings volumes, better than the 1% to 3% decline the company had expected. Australian audience averaged 12.7 million people a month, with 146.4 million monthly visits, up 11%, and 2.5 million enquiries from prospective purchasers, up 8%. Active members rose 14%, properties tracked by their owners rose 15% to 5.2 million and vendor leads rose 22%. The company rolled out an AI assistant to all members and launched a video hub with 2.9 million views since November 2025.

On portfolio changes, it acquired a 70% controlling stake in Simplicity Loans & Advisory to diversify Mortgage Choice into commercial lending, consolidated North American visualisation business Planitar from October 2025 and announced the disposal of Housing.com in India to Aurum PropTech, with REA India to hold 24.9% of Aurum afterwards.

Reading the share price change

The share price of REA Group is down approximately 26.41% over the past year. That figure measures price movement only. It does not include dividends or franking credits, and the exact amount depends on the start and end dates used, which is why it is described as approximate here. A share price that is approximately 26.41% lower over the period reflects market expectations and conditions across many factors at once, not only the company’s most recent results.

On 19 October 2026 the shares moved approximately 0.30% on the day, which is one session within that longer period. The results referred to in this article cover a period that ended before 19 October 2026 and were released on a different date to the share price figures quoted. For that reason, this article does not treat the share price change as a response to the announcement.

Sector backdrop

The benchmark index finished the 19 October 2026 session higher. The S&P/ASX 200 (ASX: XJO) stood at 8,845.70 at 4:25 pm (GMT+11) on 19 October 2026, up 0.44%, or 39.00 points, for the day. On the sector map, A-REIT fell 0.34%, though a property listings platform is not a real estate investment trust. More broadly, Energy rose 2.16%, Industrials 0.93%, Financials 0.85%, Utilities 0.38% and Consumer Staples 0.25%, while Information Technology fell 1.35%, A-REIT 0.34%, Consumer Discretionary 0.18%, Telecommunication Services 0.16% and Health Care 0.13%.

Risks shareholders should weigh

Reported profit fell 19% because of impairments, and flat listings volumes mean revenue growth depends on pricing yield. Property market activity and listing volumes affect results, and the India exit involves a minority stake in a listed company.

What’s next

REA will continue developing AI and visualisation products, integrate Simplicity Loans and iGUIDE, and complete the disposal of its Indian business.

FAQs

Q: What was REA’s FY26 core net profit?

A:$650 million, up 15%.

Q: What is the full-year dividend?

A:$2.97 per share, fully franked, up 20%.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.